Fiducian remains in acquisition mode

Mike Taylor

Managing Editor/Publisher, Financial Newswire

16 August 2023

Fiducian Group remains in the market for financial planning acquisitions after reporting a $12.30 million statutory net profit on the back of a marginal decline in assets under management and administration.

The company said the key factors impacting profits had been volatile financial markets which resulted in average assets under management and administration beig marginally below 2022 figures.

As well, it said platform administration fees were reduced and there were costs associated with assimilating 40 new employees from Fiducian’s acquisition of People’s Choice Credit Union.

However, it said the costs had now been absorbed and with a rebound in the last quarter of 2023, funds under management, administration and advice had grown to $12.3 billion.

The company told the Australian Securities Exchange that net inflows of $265 million were received during the year in Fiducian’s core platform from Fiducian’s aligned network of 80 salaried and franchised advisers.

It said that, in addition, Fiducian’s low-cost product for Independent Financial Advisers, Auxilium and other badged products attracted $100 million in additional net inflows growing quickly to $210 million funds under administration.

Commenting on the result, Fiducian executive chairman, Indy Singh said the company had continued to capitalise on the main revenue earning segments of its business model – Platform Administration, Funds Management and Financial Planning.

He said the management and board remained positive for further growth.

“Significant effort is being directed to distribution of new products and services and as well, we remain on the lookout for further earnings per share accretive acquisitions of client bases,” Singh said.